Solana price wouldn’t change much over the next few trading sessions, unless market pumps or dumps

By Selena On Dec 12, 2021

Among the top 10 crypto assets, Solana (SOL) price has fluctuated the most over the past seven days. The current fifth-largest coin has lost more than 13% in value in the past week. Other coins in the same top 10 lists have increased or decreased by no more than 7% in the same time frame. At the time of writing, SOL is changing hands at $168.65.

SOL/USD 4-hour chart | Source: TradingView

Solana price is expected to head in this direction in the next 24-hours

On the 1-hour chart, Solana’s price has been encapsulated in a descending channel. During the early hours of Saturday, it briefly broke below the lower trendline but quickly managed to slide back up. Now, in the past few hours, the price of SOL has moved horizontally.

Source: TradingView

SOL’s OI has been shrinking since the mid of November. From the period mentioned above’s $1.91 billion peaks, the same has now fallen to a level around $800 million. The evident erosion of OI essentially means that open positions have gradually been closed by traders. It also implies that new traders aren’t very keen on entering the market at the moment.

With not much new money entering into the ecosystem, it would be challenging for SOL to shrug off its monotonous downtrend phase and initiate a change in direction.

Source: CoinGlass

However, the funding rate across most major exchanges has stepped back into the positive territory. Only on OKEx, the rate was slightly negative (-0.003922). Now, the turnaround in the direction of most of the exchanges’ curves highlights that long traders have started demanding more leverage than their short counterparts. However, the intensity of positivity isn’t that high at the moment, indicating the insecurity in the minds of leveraged traders.

Source: CoinGlass

Furthermore, the liquidation chart also doesn’t look intimidating or imposing. The cumulative value of both long and short-term liquidations over the past 12 hours accounts for just $234.5k at press time. Therefore, with such a small amount of liquidation, it is impossible to say much about what kind of traders the market is currently favoring.

The trends mentioned above come to light that traders are currently quite cautious about. So, at this point, it can be assumed that the price of SOL will not change much in the next few trading sessions unless the broader market pumps or dumps. Market participants, in turn, can expect SOL to continue to forecast sideways movements on its price chart over the coming day.

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